Costco’s Solid Quarter Meets Caution as Truist Trims Target and Cramer Voices Concerns

Overview

• Truist cut Costco’s price target to $926 and maintained a Hold rating, citing valuation concerns tied to delayed renewals from a higher share of digital sign-ups.
• Jim Cramer said he is reevaluating the stock after CFO Richard Galanti’s departure and remarked that he did not like everything he heard from management.
• Costco reported fiscal Q1 2026 revenue of $67.3 billion, an 8.3% increase from a year earlier.
• Comparable sales rose 5.9% in the U.S. and 6.4% companywide, with membership growth of 5.2% that shows signs of slowing.
• The company opened eight warehouses in the quarter for a total of 921, now plans 28 net openings this year, and reported newer locations averaging $192 million in first-year sales with some high-volume relocations ahead.